Traders brace for bitcoin futures launch after wild week for currency
On Sunday, bitcoin was up about 3% at $15,000 on the Luxembourg-based Bitstamp exchange and on the Gemini exchange it was at $15,650.Read more
But while some market participants are excited about a regulated way to bet on or hedge against moves in bitcoin, others warn that risks remain for investors and possibly the clearing organisations underpinning the trades.
The futures are cash-settled contracts based on the auction price of bitcoin in dollars on the Gemini exchange, owned and operated by virtual currency entrepreneurs Cameron and Tyler Winklevoss.
“The pretty sharp rise we have seen in bitcoin in just the last couple of weeks has probably been driven by optimism ahead of the futures launch,” said Randy Frederick, vice-president of trading and derivatives for Charles Schwab in Austin